Neinor Homes SA · BME:HOME
Neinor Homes SA — H1 2018 Earnings Presentation
41 slides from Neinor Homes SA's earnings presentation, Jul 23, 2018
Slide 1: H1 2018 Results Presentation
July 23rd, 2018 H1 2018 Cambio de Results Presentation caratula Barcelona CAMBIAR FOTO
Slide 2: Disclaimer
DISCLAIMER This Presentation has been prepared by Neinor Homes, S.A. (“Neinor”) for information purposes only and it is not regulated information or information which has been subject to prior registration or control by the Spanish Securities Market Commission. “Presentation” means this document, it
Slide 3: Today's Agenda
TODAY´S AGENDA Member of: Contents 01 Business Review Juan Velayos Lluis Chief Executive Officer 02 Financial Overview 03 Non-Financial Reporting Jordi Argemí García Chief Financial Officer 04 Q3 Investor Days 05 Q&A Juan Gómez Vega Chief Investor Relations Officer 06 Appendix
Slide 4: Atria Homes – Madrid (Center)
Atria Homes – Madrid (Center) 4
Slide 5: Executive Summary
EXECUTIVE SUMMARY H1 delivered in line with guidance H2: 750 deliveries as per plan 2018 c.95% pre-sold(1) (1) Of units to be delivered in H2 Strong progress in all sites On track to deliver 2,000+ units 2019 c.70% pre-sold 2020 Significant de-risking beyond 2019 Licenses obtained for 1,800+ units N
Slide 6: Clear Progress in H1
CLEAR PROGRESS IN H1 Ramp-up 2018, 2019 AND 2020 ADVANCING IN LINE WITH GUIDANCE Delivery Licenses Units Guidance Granted Commercialization Construction H1 Milestone delivered (units) (%) 4 sites c. 95% 10 sites 1,000+ 100% 249(1) delivered pre-sold for H2 on track 2018 as per guidance All construct
Slide 7: Disciplined Approach to Land Acquisition
DISCIPLINED APPROACH TO LAND ACQUISITION Land Bank MAINTAINING TOP QUALITY, EFFICIENT USE OF EQUITY AND STRATEGIC LAND OPTIONALITY LAND BANK SNAPSHOT –13,500+ UNITS(1) North c.2,600 units East 19% c.2,500 units 19% 500+ units (€25m) fully-permitted land acquired(2) Center c.3,000 units 22% c. 1,400
Slide 8: Strong but Disciplined Pre-Sales
STRONG BUT DISCIPLINED PRE-SALES Revenues TOTAL ORDER BOOK OF 2,772 UNITS (€ 929M) – ASP €335K 464 UNITS (€150M) PRE-SOLD IN Q2 VS. 294 UNITS (€98M) IN Q1 HIGH QUALITY PRE-SALES: 76% SECURED WITH CONTRACTS(1) 6.9% ANNUAL OBSERVED LIKE-FOR-LIKE HPA(2) ~4,000 UNITS STARTED PRE-SELLING IN H1 7,000+ uni
Slide 9: 56 Sites, 4,600+ Units Under Construction
56 SITES, 4,600+ UNITS UNDER CONSTRUCTION(1) Operations PROGRESSING ON TIME AND ON BUDGET WIP ACTIVITY BRIDGE €430M CONTRACTED(2) - ~1% BELOW BUDGET 60,0 47 sites at or below budget 35 50,0 10 30 40,0 25 14 4 20 Sites Sites 30,0 56 9 sites above budget 15 20,0 36 10 10,0 5 - - WIP FY 2017 Deliveries
Slide 10: Target Gross Margin Reiterated
TARGET GROSS MARGIN REITERATED Margin Protection IMPACT OF 1% HPA INCREASE EQUALS 2X+ THE IMPACT OF 1% COST INCREASE HPA OUTPACING COST INFLATION GROSS MARGIN ON A WIP(2)UNIT IPO June HPA RUNNING ABOVE EXPECTATIONS In € ‘000 Plan 2018 VAR % 1) Demand/supply imbalance Revenue (ASP) 326 338 3.7% In ad
Slide 11: Ancillary Businesses in Line with Expectations
ANCILLARY BUSINESSES IN LINE WITH EXPECTATIONS Ancillary Businesses SERVICING AUM INCREASED BY C. 10% IN Q2 LEGACY SERVICING €20.6m sales in H1, in line with budget €1.66bn AUM at book values Reorganization at Kutxabank resulting in AuM growth of €175m(1) €63.4m Remaining BV €15.1m Revenues, €8.7m E
Slide 12: Alquerías Homes – Valencia (Levante)
Alquerias – Levante - JGD Alquerías Homes – Valencia (Levante) 12
Slide 13: Development Starts Showing in the P&L
DEVELOPMENT STARTS SHOWING IN THE P&L Financials €5.3M OPERATING EBITDA AND EARNINGS BEFORE TAXES €2.5M IN Q2 Summary P&L (in €M) Q2 €M H1 2018 Q2 2018 Q1 2018 Revenues 78,9 59,8 19,1 REVENUES OF €60M / €5.3M OPERATING EBITDA Gross Margin 27,8 18,1 9,7 FIRST QUARTER WITH POSITIVE EARNINGS BEFORE TAX
Slide 14: Strong Operating Cash Flow in Q2
STRONG OPERATING CASH FLOW IN Q2 COMPANY STARTS TO RECYCLE DELIVERIES’ CASH Financials Summary Cash Flow (in €M) Q2 €M H1 2018 Q2 2018 Q1 2018 Profit (Loss) before Tax1 -5,4 2,5 -7,9 +€6.1M OPERATING CASH FLOWS AS DELIVERIES OCCUR Adjustments 8,2 3,5 4,7 Amortization 0,5 0,3 0,2 Finance Costs/Revenu
Slide 15: BS: Growing Inventories
Financials BS: GROWING INVENTORIES FOCUS ON DEVELOPMENT (95% OF TOTAL STOCK) WHILE SELLING DOWN LEGACY Summary Balance Sheet (in EUR m) Change H1 '18 vs FY €M H1 2018 Q1 2018 FY 2017 '17 PPE 5,8 2,3 1,9 3,9 208,9% Investment Property 1,2 1,3 1,6 -0,4 -25,6% Other Non-Current Assets Non-Current Asset
Slide 16: Net Debt in Line with Q1
NET DEBT IN LINE WITH Q1 BALANCED DISTRIBUTION OF DEBT AMONG LOCAL BANKS’ POOL Financials Net Debt (in EUR m) Var. H1 '18 vs €M H1 2018 Q1 2018 FY 2017 FY '17 CONSERVATIVE DEBT RATIOS Gross Debt Non-Current Bank Borrowing 440,8 8,9 426,6 17,9 417,7 17,9 23,1 -9 5,5% -50,3% LTV AT 24% Corporate Finan
Slide 17: NAV Increased by 2% in H1
Land Bank NAV INCREASED BY 2% IN H1 GAV: €1,892m NAV: €1,317m / +2% since Dec ’17 Includes €79m of remaining legacy (Savills valuation Dec ‘16) NNAV €1,217m +5.5% Like-for-like Does not include €60m Strategic Land Increase driven by HPA optionality value(1) and improved product quality 2.000 Servici
Slide 18: Plaza Europa 38 Homes – Hospitalet, Barcelona (East)
Plaza €opa 38 Homes – Hospitalet, Barcelona (East) 18
Slide 19: Non-Financial Reporting
NON-FINANCIAL REPORTING TALENT INCENTIVE PLAN APPROVED TO FURTHER ALIGN EMPLOYEES’ INCENTIVES WITH SHAREHOLDERS’ VALUE CREATION Corporate Governance The Board approved the Equality Plan, the Succession Plan and the Corporate Governance policy Corporate Social Responsibility The Company adhered to th
Slide 20: Q3 Investor Days
04 Q3 Investor Days Madrid (Centre)
Slide 21: Opportunity to Know the Team, Processes and Assets
OPPORTUNITY TO KNOW THE TEAM, THE PROCESSES AND THE ASSETS SEPTEMBER Land, Deliveries and WIP visits + Digital transformation experience If you haven’t registered yet, contact us at [email protected] 21 21
Slide 22: Cantal Homes
Cantal Homes Mojacar (South East)
Slide 23: Amara Homes – Las Rozas, Madrid (Center)
Amara Homes – Las Rozas, Madrid (Center) (Levante) 23
Slide 24: Appendix Contents
APPENDIX Contents 01 2018 Visibility 02 2019 Visibility 03 2020 Visibility 04 Pre-Sales Activity 05 Savills Valuation
Slide 25: 2018: H1 Deliveries, as Expected
Appendix 2018: H1 DELIVERIES, AS EXPECTED 01 10 SITES WITH ADEQUATE PROGRESS FOR H2 DELIVERY EXPECTED DELIVERY CALENDAR STRONG REVENUE VISIBILITY c.95% of deliveries pre-sold(2) 900 769 800 700 600 500 DELIVERED Units 400 (1) 300 249 200 100 0 H1 2018 H2 2018 Pre-sold Remaining stock (1) 101 units p
Slide 26: c. 250 Units Delivered in H1 2018
C. 250 UNITS DELIVERED IN H1 2018 Appendix (1) 01 TOTAL HOMES DELIVERED SINCE 2016 UP TO 681 Urduliz Homes Port Forum Homes II(2) Region North Region East Sant Adria de Location Urduliz, Biscay Location Besos, Barcelona Units (#) 36 Units (#) 86 Sqm 4,030 Sqm 7,783 Construction Company C. Murias Con
Slide 27: Ramp-up: Zoom into 2018 Deliveries
Appendix RAMP-UP: ZOOM INTO 2018 DELIVERIES 01 THE 10 REMAINING SITES TO BE DELIVERED IN 2018 NORTH Development IRUN HOMES Development TORRESOLO HOMES Development ASTRABUDUA HOMES Development IKASLE HOMES Region North Region North Region North Region North Units 38 Units 60 Units 48 Units 55 Pre-sal
Slide 28: Ramp-up: Zoom into 2018 Deliveries
Appendix RAMP-UP: ZOOM INTO 2018 DELIVERIES 01 THE 10 REMAINING SITES TO BE DELIVERED IN 2018 EAST Development DIAGONAL 119 HOMES Development CAN MATES HOMES Development LA MARINA DE BADALONA Region East Region East Region East Units 32 Units 45 Units 180 Pre-sales 94% Pre-sales 100% Pre-sales 94% E
Slide 29: 2019: On Track to Deliver 2,000+ Units
Appendix 2019: ON TRACK TO DELIVER 2,000+ UNITS 02 ALL 31 SITES SHOWING GOOD PROGRESS EXPECTED DELIVERY CALENDAR STRONG REVENUE VISIBILITY c. 70% of deliveries pre-sold 50% of remaining units blocked, to be sold closer to delivery to maximize HPA 1.403 618 Pre-sold Remaining stock H1 2019 H2 2019 31
Slide 30: Ramp-up: Zoom into 2019 Deliveries
Appendix RAMP-UP: ZOOM INTO 2019 DELIVERIES 02 THE 31 SITES EXPECTED TO BE DELIVERED IN 2019 NORTH Development GOIEGI HOMES Development URBAN HOMES Development ARBAIZENEA HOMES Development DESIGN HOMES Region North Region North Region North Region North Units 36 Units 39 Units 48 Units 28 Pre-sales
Slide 31: Ramp-up: Zoom into 2019 Deliveries
Appendix RAMP-UP: ZOOM INTO 2019 DELIVERIES 02 THE 31 SITES EXPECTED TO BE DELIVERED IN 2019 NORTH Development ABRA HOMES Development NATURA HOMES Development LEOIANDI HOMES Region North Region North Region North Units 105 Units 34 Units 62 Pre-sales 72% Pre-sales 32% Pre-sales 55% Expected Delivery
Slide 32: Ramp-up: Zoom into 2019 Deliveries
Appendix RAMP-UP: ZOOM INTO 2019 DELIVERIES 02 THE 31 SITES EXPECTED TO BE DELIVERED IN 2019 EAST Development PLAÇA EUROPA HOMES Development VOLLPALLERES HOMES II Development CAN MATES HOMES II Development LA CATALANA R-9 Region East Region East Region East Region East Units 92 Units 48 Units 50 Uni
Slide 33: Ramp-up: Zoom into 2019 Deliveries
Appendix RAMP-UP: ZOOM INTO 2019 DELIVERIES 02 THE 31 SITES EXPECTED TO BE DELIVERED IN 2019 CENTER Development ATRIA HOMES Development VIA HOMES Development ALEA HOMES Development PRADO HOMES Region Center Region Center Region Center Region Center Units 148 Units 70 Units 86 Units 70 Pre-sales 98%
Slide 34: Ramp-up: Zoom into 2019 Deliveries
Appendix RAMP-UP: ZOOM INTO 2019 DELIVERIES 02 THE 31 SITES EXPECTED TO BE DELIVERED IN 2019 SOUTH EAST Development ALMIJARA HOMES Development TEATINOS HOMES Development CAÑADA HOMES Development ALBORADA HOMES Region South East Region South East Region South East Region South East Units 104 Units 11
Slide 35: 2020: 45%+ of Works' Licenses Granted
Appendix 2020: 45%+ OF WORKS’ LICENSES GRANTED 03 ALL PRODUCT ALREADY PRE-SELLING LICENSING PROGRESS 4.000 3.629 Status of pending licenses by submission date 3.500 3.000 1,800+ units obtained licenses 512 657 2.500 already Units 2.000 1.500 1.187 2.460 1.000 655 500 0-4 months 4-8 months >8 months
Slide 36: Ramp-up: Zoom into 2020 Deliveries
Appendix RAMP-UP: ZOOM INTO 2020 DELIVERIES 03 1,800+ UNITS UNDER CONSTRUCTION NORTH CENTER Development DESIGN HOMES II Development LEIOANDI HOMES II Development ITURIBARRI HOMES III Development AURA HOMES Region North Region North Region North Region Center Units 46 Units 62 Units 22 Units 254 Pre-
Slide 37: Ramp-up: Zoom into 2020 Deliveries
Appendix RAMP-UP: ZOOM INTO 2020 DELIVERIES 03 1,800+ UNITS UNDER CONSTRUCTION SOUTH EAST Development HACIENDA HOMES Development LIMONAR HOMES Development ALMENARA HOMES Development CASARES HOMES Region South East Region South East Region South East Region South East Units 335 Units 154 Units 118 Un
Slide 38: Pre-Sales Activity Accelerating
Appendix PRE-SALES ACTIVITY ACCELERATING 04 STRONG DEMAND KEEPS FUELING HPA 6.9% ANNUAL OBSERVED HPA(1) IN Q2 6.9% 8.1% 7,6% South 7,0% 7,9% North 4,5% 8,2% East 6,9% 8,7% Centre 9,1% 0,0% 1,0% 2,0% 3,0% 4,0% 5,0% 6,0% 7,0% 8,0% 9,0% 10,0% HPA Q1 2018 HPA Q2 2018 SALES ACCELERATING FOLLOWING COMMERC
Slide 39: Savills Appraisal May 2018
Appendix SAVILLS APPRAISAL(1) MAY 2018(2) 05 REGIONAL DETAIL ASP up 13% due to HPA and improved product/quality definition Costs pending to complete increase explained by an adjustment to the costs estimated in December (relatively flat inflation cost for 2017) and inflation in H1 See next slide for
Slide 40: Adjustments to Savills Appraisal
Appendix ADJUSTMENTS TO SAVILLS APPRAISAL 05 2000,0 (1) 99 12 46 (2) 10 1750,0 €m 1500,0 1.868 1.813 1.813 1.769 1.779 1250,0 1000,0 Savills Development GAV Land not registered in the Savills Development GAV "Sale as is" Book Value CAPEX invested June 18' Deliveries June 18' GAV Development June 18'
Slide 41: Zahir Homes Cordoba
Zahir Homes Cordoba (South West)